Michael McNicholas has decided to step down from his role as group chief executive of Ervia, the State -utility company responsible for Irish Water and Gas Networks Ireland.

He’ll remain in the role until May next year, and the board of Ervia will now begin the process of seeking a suitable candidate to succeed him.

Commenting on the CEO’s decision, the Chairman of Ervia, Mr. Tony Keohane said: “While we respect Michael’s decision, we very much regret losing someone of his calibre from our organisation. Michael has played a key role in the establishment of Ervia and has led the company through its complex and demanding evolution from its origins as Bord Gáis Éireann.

"That journey involved the sale of the Bord Gáis Energy business, the formation of Gas Networks Ireland and the creation of Irish Water. Under Michael’s leadership, Ervia has built a high quality team that has continued to develop the State’s gas network and made very significant progress towards the required transformation and rehabilitation of the Ireland’s water and wastewater infrastructure.

"We thank Michael for his enormous contribution to the company and appreciate that he is keen to ensure a planned transition and an orderly handover to a new Group CEO.”

“The decision to leave Ervia has not been an easy one. While my time at the company has been very challenging it has also been very rewarding. I have had the privilege of working with exceptional people who have given everything they can to make this company successful. Indeed many have gone far beyond what is reasonable to expect, and I and the Board of Ervia owe each of them a debt of gratitude,” Mr McNicholas said.

He will be standing down after four years in the post, which he took on in May 2013. Prior to joining Ervia, then known as Bord Gais, Michael was chief executive officer at NTR plc.